Avanti Mining Inc.

Avanti Mining Inc.

October 20, 2008 07:00 ET

Avanti Mining Finalizes Purchase of the Past Producing Kitsault Molybdenum Mine, British Columbia

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 20, 2008) - Avanti Mining Inc. (CNQ:AVT) ("Avanti") is very pleased to report that it has completed the purchase of an undivided, 100% direct interest in the Kitsault molybdenum mine and surrounding mineral tenures, located in northern British Columbia, from Aluminerie Lauralco, Inc. ("ALI"), a wholly owned subsidiary of Alcoa, Inc. The purchase price is US$20 million.

Craig J. Nelsen, Avanti's President and CEO, states, "with our due diligence work behind us, we are now ready to begin developing this world-class asset. During the last several months, we have had a drill program underway, with 5,700 meters drilled to date, which will confirm the historical resource and reserve information published in our NI 43-101 Report. Our next milestone on this project will be the issuance of the Preliminary Economic Assessment within the next several weeks."

On August 5, a NI 43-101 compliant resource estimate was issued for the mine. At a 0.04% Mo cut-off grade, this estimate contains an Indicated resource of 158 million tonnes grading 0.10% Mo, containing 348 million pounds of molybdenum, and an additional Inferred resource of 133 million tonnes, grading 0.08% Mo, containing 235 million pounds of molybdenum. The cut-off grades are based on metal price assumptions of US$20.00/lb of molybdenum and a metallurgical recovery of eighty-nine percent for molybdenum. The Kitsault mine has previously produced during two periods, from 1967 to 1972, and from 1981 to 1982. Total production on the property during both periods was approximately 30 million pounds of molybdenum.

Avanti Mining Inc. is a company focused on acquiring, exploring, and developing mineral resource projects. It intends to acquire advanced Molybdenum prospects and move them towards development; to purchase by-product Molybdenum production streams from copper producers; and to become a consolidator in the junior Molybdenum market.

Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Avanti Mining Inc. (the "Corporation"). All statements, other than statements of historical fact, included herein including, without limitation; anticipated dates for receipt of permits and approvals, construction and production, and other milestones; anticipated results of drilling programs, feasibility studies and other analyses; estimated timing and amounts of future expenditures, and the Corporation's future production, operating and capital costs, operating or financial performance, are forward-looking statements. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; uncertainty of estimates of capital and operating costs, recovery rates, production estimates and estimated economic return; the need for cooperation of government agencies and native groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs or in construction projects and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals; and other risks and uncertainties disclosed in the Corporation's prospectus dated July 31, 2007, which is available at www.Sedar.com. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.

The CNQ Stock Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Avanti Mining Inc.
    Craig J. Nelsen
    Chief Executive Officer
    (303) 565-5491, extension 13
    Avanti Mining Inc.
    Cheryl A. Martin
    Senior Vice President, Investor Relations
    (303) 565-5491, extension 12
    Website: www.avantimining.com